1

The move to “off-portal”mobile web

Osney 5th MGF24th Jan 2008

Ray Anderson

www.bango.com

© Bango plc 2007

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Overview

• Off-portal vs On-portal• Business models• Marketing• Money Collection• Browsers• Trends

3

About Bango BGO.L

• Founded 1999 to enable anybody toquickly and easily engage with mobilephone users - through the web -without concern for mobile operators.

• 45 people in Cambridge (UK)New York, Madrid (Spain)

• Hosted service operatingglobally via Web

• London Stock Exchange (AIM)float June 2005

Partner of leading mobile operatorsto accelerate off-deck mobile web

Award winning technology

Chosen by leading content providersto engage users thru mobile web

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Bango: Quick & easy mobile web

1,000 million mobile internet browsersMobile web

Traffic, Information, Payment

+3,500 others

5

Off-portal = Direct to Consumer

The total market

On-portalCommercial relationship with each operator

Direct-to-consumerYou promote and engage

directly with the whole market

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Routes to MarketMobileOperatorPortal

MobileOperatorDirectory

“Friendly”Off-portal

Other

Marketing &Discovery

PaymentMethods

Reach

Contract

07 UK Rev(Operator)

MNO Mktg

5-20 30-300 1,000-50,000 Millions

By Operator/partner

Discoveryon portal

By CPOperator Search

By CPOpen Search

OperatorPayment

OperatorPayment

WAP billingPSMS

WAP billingCCard, Ad fund

Portal Users Cross Operator Cross Operator Cross Operator

Operator Operator Indirect None

£200M(VAR%)

£10M(20-40%)

£200M(5%-50%)

N/A(0%-50%)

Strategic “Slots” Search/Ad sales Search/Ads

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Operators migrating

Prog

ress

TypicalInternet

ISP

EncourageCustomerChoice

Ease Payment

OPEN

OPEN

Customer

HELL

Customer

Heaven

DE

UK

UKFRUK

JP

DE

KDDIJP

US WirelessCarriers

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Traditional text promotion - complex

• Difficult instructions for end users- Text response

• Expensive to promote- Full page

• Support overhead• Small print• Un-trusted subscription models

9

Off-portal browse and buy

User navigatesyour mobile site

You providedownload page

Collectpayment for

content

• Operator-like shopping experience• Billing within the WAP session• Only pay per download

• No hidden costs• T&Cs clearly displayed• Build consumer trust

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The business model

Games Provider

money

game

paymentcosts

marketingcosts

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Mobile marketing channels

Enter yourmobile number

Visitwwe.wap.com

Community / ViralPrint

Bar code

Mobileadvertising

Websites

Mobilesearch

Direct URL

TV

Push

Your mobilesite

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Mobile Search

FEED

13

Bango Button

14

Content Providers & Merchants

Mon

ey F

low

AggregatorsResell Operator Billing

E-topup Operators

Retail ATM Cards Banks

Cash

Channelling money to you

1,000,000,000 mobile web users1,000,000,000 mobile web users

15

Content Providers & Merchants

Mon

ey F

low

AggregatorsResell Operator Billing

E-topup Operators

Retail ATM Cards Banks

Cash

Loosening the purse strings …

1,000,000,000 mobile web users1,000,000,000 mobile web users

FRICTION!

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Maximize revenue

Available money PSMS only

Revenue leakage fromunpaid messages (18-30%)

PayPal/credit/debit card

Direct operator billingInternational

Browse in

23% uplift inrevenue

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The attractions of alternatives

• Typical “Operator Billing”: 75% outpayment, 70 day payment

• Typical “Financial Billing” 93% outpayment, 10 day payment

• Typical business model (30p/59cent cost mini game):

99p sale = 84p (ex VAT) 21p billing 25p Mktg 30p royalty 8p marginvs99p sale = 84p (ex VAT) 6p billing 25p Mktg 30p royalty 23p marginor99p sale = 84p (ex VAT) 6p billing 35p Mktg 30p royalty 13p margin

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Price to retain key user segments

Consider:Freebies Subscription Discounts

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The attraction of “ad funding”

“Content” Provider

o

money

stuff

Adverts / Search

“Content”Provider 2

Xstuff

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Browser Trends

WAP-131%

HTML1%

WAP-258%

iMode etc.10%

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Summary

• Mobile web is widely used, and increasing fast(Flat rate data is accelerating growth)

• Many billing options but generally improving returns

• Multiple new marketing opportunities- operator search open search- operator ads open ads- mobile to mobile viral (WAP.com)- PC to mobile (Bango button)- text marketing

• Technology is changing slowly- Stay with the basics: XHTML, J2ME to reach 60M +

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Supplementary

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Bango maximizes revenue

Ban

go B

illR

ankTM

Tech

nolo

gy

>13,000,000user profiles

across3,000+ sites

Operator

User Info.

U/R/G rating

Billing cost

Min margin

Antifraud

Availability

User Pref.

AggregatorsPremium SMS billing

Trusted statuswith operators

Operator BillingDirect connect to operator

Alternatesto expand coverage

Your mobile website Factors: